TAMPA, Fla — The most recent Consumer Price Index report shows costs and inflation are increasing.
U.S. inflation rose to 3% in January.
“In the past couple of reports that have been put out by the government, inflation is starting to come back up,” said Michael Snipes, Instructor of Economics for the University of South Florida.
The CPI measures price changes across commonly purchased goods and services. The report shows most of the categories went up.
This is a sign the Federal Reserve will keep interest rates high, according to some economists.
Experts believe this shows the future of the economy is still uncertain.
With President Donald Trump’s promises to expand tariffs, many economists worry costs could increase even more, at least temporarily.
“Tariffs are absolutely inflationary. They are. It’s a tax. It’s a tax the same as a sales tax would be when you buy something at Walmart,” Snipes.
That’s why financial experts say it’s important to stay on top of your household budgets to control what you can and figure out where your money is going.
“Budgets have been tight and I think we’re all having to kind of reflect and look at what are the opportunities to lower our costs and pinch every penny,” said Zachary Churchill, VP of Consumer and Mortgage Lending at Achieva Credit Union.
To save some cash they suggest:
- Eating in more than eating out
- Shopping at cheaper grocery stores
- Buying more non-name brand alternatives
- Calling your internet and cell phone providers to negotiate better deals
- Taking inventory of all of your subscriptions and see what you can cut
Churchill also encourages people to put some money into savings, even if it’s a little.
“When every penny is going to bills, it feels like it’s an insurmountable amount and how do I even get started. So I think taking the approach of 'I’m just going to save a little.' So even if that’s $1 or $10 a month, starting where you are and sort of that snowball or cascade effect you build it up,” said Churchill.
Economists believe consumers should expect the next few months to be a little rocky, as is common when a new president comes into office.
“The fact that inflation numbers are going back up, that could be an anomaly. It could be. But it will be very interesting to see what happens when February and March’s numbers come in,” said Snipes.
The next CPI report is scheduled to be released on March 12.
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